Ametek, Inc.
AME
$214.36
+2.87%
Ametek, Inc. is a diversified industrial manufacturer operating in the machinery sector. It is a collection of over 40 autonomous businesses focused on electronic instruments and electromechanical components, emphasizing product differentiation and leadership in niche markets.
AME
Ametek, Inc.
$214.36
Related headlines
Investment Opinion: Should I buy AME Today?
Based on a synthesis of the provided data, the objective assessment for AME is a Hold. The company's underlying business is exceptionally strong, with impressive growth, profitability, and financial discipline. However, the current valuation is rich, and the stock is in a corrective phase after a significant run-up. The forward P/E of 23.87 based on estimated EPS offers a more reasonable entry point than the trailing multiple, but investors may want to wait for a more attractive valuation or clearer signs of a sustained uptrend before establishing new positions.
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AME 12-Month Price Forecast
The analysis yields a neutral stance due to the tension between AME's high-quality business and its full valuation. Confidence is medium as the fundamental data is strong, but the lack of a clear consensus price target and the stock's recent volatility add uncertainty to the near-term path.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Ametek, Inc.'s 12-month outlook, with a consensus price target around $278.67 and implied upside of +30.0% versus the current price.
Average Target
$278.67
2 analysts
Implied Upside
+30.0%
vs. current price
Analyst Count
2
covering this stock
Price Range
$171 - $279
Analyst target range
No sufficient analyst coverage available. The provided data includes recent analyst rating actions but lacks consensus target price or ratings distribution figures. Recent institutional ratings show a mix of 'Outperform/Overweight/Buy' and 'Equal Weight/Neutral/Perform' actions, but a comprehensive summary of Wall Street consensus is not available from the inputs.
Bulls vs Bears: AME Investment Factors
AME presents a mixed picture of high-quality fundamentals against a premium valuation. The company demonstrates strong growth, profitability, and financial health, but the stock has corrected recently and trades at multiples that demand sustained high performance. The investment thesis hinges on whether its operational excellence can justify its price.
Bullish
- Strong Revenue Growth: Q4 revenue grew 13.44% YoY, showing robust demand.
- Excellent Profitability: Net margin of 19.95% and ROE of 13.93% are strong.
- Healthy Balance Sheet: Low debt-to-equity of 0.21 and strong free cash flow of $1.67B.
- Dividend Increase Signal: Recent 10% dividend hike signals management confidence.
Bearish
- High Valuation Multiples: Trailing P/E of 31.97 and P/S of 6.39 appear elevated.
- Recent Sharp Pullback: Stock down 12.9% in past month, underperforming the S&P 500.
- Economic Sensitivity: As an industrial manufacturer, cyclical downturns pose a risk.
- Limited Analyst Coverage: Only 2 analysts providing estimates, reducing visibility.
AME Technical Analysis
The stock has shown strong overall performance over the past six months, rising 11.17% from the start of the provided data period (October 2025) to the current price of $208.37. It reached a peak of $241.46 in early March 2026 before a significant pullback. Over the short term, the stock has declined 12.90% over the past month, significantly underperforming the S&P 500, which fell 7.87%. However, it has gained 0.65% over the past three months, outperforming the broader market's 7.32% decline. The current price of $208.37 is near the middle of its 52-week range of $145.02 to $242.05, representing a retreat from recent highs and suggesting a consolidation phase after the recent correction.
Beta
1.01
1.01x market volatility
Max Drawdown
-20.0%
Largest decline past year
52-Week Range
$145-$242
Price range past year
Annual Return
+24.5%
Cumulative gain past year
| Period | AME Return | S&P 500 |
|---|---|---|
| 1m | -10.4% | -5.3% |
| 3m | +4.4% | -4.6% |
| 6m | +15.2% | -2.8% |
| 1y | +24.5% | +15.9% |
| ytd | +2.5% | -4.6% |
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AME Fundamental Analysis
Revenue for Q4 2025 was $1.998 billion, representing a year-over-year growth of 13.44% from the same quarter in 2024. Net income for the quarter was $398.6 million, resulting in a healthy net margin of 19.95%. The company maintains a conservative debt profile with a debt-to-equity ratio of 0.21, indicating a strong balance sheet. Free cash flow over the trailing twelve months is robust at $1.67 billion, supporting shareholder returns and investments. Operational efficiency is solid, with a Return on Equity (ROE) of 13.93% and a Return on Assets (ROA) of 7.88%, demonstrating effective use of capital.
Quarterly Revenue
$2.0B
2025-12
Revenue YoY Growth
+0.13%
YoY Comparison
Gross Margin
+0.36%
Latest Quarter
Free Cash Flow
$1.7B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is AME Overvalued?
Given the company's positive net income, the primary valuation metric is the Price-to-Earnings (P/E) ratio. The trailing P/E ratio is 31.97, while the forward P/E is 23.87, based on estimated EPS. The Price-to-Sales (P/S) ratio is 6.39, and the Enterprise Value-to-EBITDA (EV/EBITDA) is 26.14. Data for direct industry average comparisons is not available in the provided inputs, so a peer comparison cannot be made. The valuation appears to reflect expectations for continued growth, as indicated by the lower forward P/E relative to the trailing figure.
PE
32.0x
Latest Quarter
vs. Historical
High-End
5-Year PE Range 22x~34x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
26.1x
Enterprise Value Multiple
Investment Risk Disclosure
The primary risk for AME is its valuation. With a trailing P/E of 31.97 and a forward P/E of 23.87, the stock is priced for perfection and is vulnerable to multiple compression if growth slows or macroeconomic conditions deteriorate. As a diversified industrial, it is exposed to cyclical downturns in its end markets like aerospace, energy, and manufacturing. The recent 12.9% monthly decline, significantly worse than the broader market, highlights this sensitivity. Operational risks appear low given its strong balance sheet (D/E of 0.21), high margins, and consistent free cash flow generation. The main risks are therefore external: a broader economic slowdown impacting industrial demand and a market re-rating of high-multiple stocks.
FAQ
The key risks are valuation compression and economic cyclicality. The stock's high P/E ratio makes it sensitive to earnings misses or rising interest rates. As an industrial manufacturer, its performance is tied to the health of the global economy, particularly in aerospace, energy, and research sectors. Recent underperformance (-12.9% in one month) demonstrates this market sensitivity.
The 12-month outlook is for consolidation with a neutral bias. The base case (60% probability) sees a trading range of $200 to $235, anchored by the forward P/E of ~24 and estimated EPS of $9.85. The bull case targets a return to the 52-week high of $242+, while the bear case could see a retreat toward $170 if macroeconomic conditions worsen.
Based on traditional metrics, AME appears fully valued to slightly overvalued. Its trailing P/E of 31.97 and Price-to-Sales ratio of 6.39 are high for an industrial company. The forward P/E of 23.87, based on estimated EPS, suggests the market is pricing in growth, but it remains a premium valuation. The stock is not clearly undervalued given current data.
AME is a high-quality stock, but its attractiveness as a buy is tempered by its valuation. The company has strong fundamentals, including 13.44% revenue growth and a 19.95% net margin. However, with a trailing P/E of 31.97, much of this quality is already priced in. It may be more prudent for new investors to wait for a more attractive entry point or market weakness.
AME is better suited for a long-term investment horizon. Its business model of niche market leadership and consistent execution rewards patient capital. The stock's recent volatility and high valuation make it a challenging short-term trade. Long-term investors can benefit from the company's growth and capital returns, while weathering near-term multiple fluctuations.